Is This "Boring" Pipeline Stock a Bargain, or Is the 7.4% Yield a Warning Sign? An Honest Look.
Most of the time, when something seems too good to be true, it is. This isn't one of those times. But there's still a "but."
Overview
Income-minded investors obviously like high yields. Dividend yields that are unusually high, however, are understandably viewed with suspicion. Frothy yields are often the result of a falling stock, and a falling stock is often an indication that trouble is brewing.
Enter MPLX (NYSE: MPLX). This oil and gas pipeline company's forward-looking dividend yield currently stands right around 7.4%, and just as shockingly, the ticker's trailing price-to-earnings ratio is just under 13. Both are at the deep-value end of the midstream sliver of the energy sector.
Details
What gives? Why is MPLX so bargain-priced?
Source
Originally published at www.fool.com.